Trusts & Estates Glossary: H

Trusts & Estates Glossary: H

HANGING POWER OF WITHDRAWAL: ( A Crummey power of withdrawal that lapses only when and if the lapse will not result in a release of a general power of appointment. A hanging power can permit more property to be transferred to a trust and qualify for the annual exclusion than would be the case if the donee were given a "five and five" Crummey power.

HEIR: A person who inherits real property; to be distinguished from next of kin and from distributee. An heir of the body is an heir in the direct line of the decedent. A son, for example, is the heir of the body of his father or mother, See also Collateral Heir; Direct Heir; Next of Kin.

HEIRS-AT-LAW: The persons who inherit the real property of a person who dies without a valid Will disposing of his property.

HOLOGRAPHIC WILL: A will entirely in the handwriting of the testator.

HOMESTEAD: The land and buildings thereon occupied by the owner as a home for himself and family, if any, and in most states protected to some extent by statute against the claims of creditors.

HYPOTHECATION: Originally, a pledge to secure an obligation without delivery of title or possession; now, generally any pledge to secure an obligation, such as the hypothecation of securities for a loan.